£10,000 loan for gap year? Risky?

Hey guys,

I was just wondering what your opinion would be on whether it is a good idea to take out a loan of £10,000 in order to fund a gap year?

Anyone had any experience of doing this? Possible regrets?

Just so people don't ask me 'can you pay it off' - my starting salary is £38,000 - so I don't think it will be a huge problem; although I could be wrong.

Thanks in advanced,

Jason

Reply 1

death.drop

16

Wouldn't it be better to work to get the money and then take the year when you have it?
Have you already secured this job?

Reply 2

jose

10

Not something i'd fancy taking on, but that is a fairly impressive salary. Do you need £10,000? What are you planning?

Reply 3

THE PROPHETOR!

OP

Thanks for the replies...

I have secured the job yes - but it is one of those jobs that once you start, you won't be leaving. So I can't really take a gap year after work.

...

To be honest I have no real idea how much i will need. I am going to be travelling for 10 months and intend to go almost everywhere. Friends have told me that they spent £7k over 7 months, so I guessed at the £10k cost.

Jason

Reply 4

death.drop

16

THE PROPHETOR!

Thanks for the replies...

I have secured the job yes - but it is one of those jobs that once you start, you won't be leaving. So I can't really take a gap year after work.

...

To be honest I have no real idea how much i will need. I am going to be travelling for 10 months and intend to go almost everywhere. Friends have told me that they spent £7k over 7 months, so I guessed at the £10k cost.

Jason

if you've definitely got the job (signed contract) on that salary that will leave you enough after tax and every day living expenses to pay it back then it's not so much of a risk.
but I would advise seeing if there is someone you know that you could borrow the money from to avoid paying interest.

Reply 5

BiscuitFuelled

8

I had about £500 when I left for my gap year, and got a job to cover the rest... there's no way I even came close to earning £10k over the course of a year though.

Being honest - you'd have to be out of your mind to spend £10k on a gap year.

Reply 6

Mr. Mortell

11

Will the bank that lend you this ten grand, let you defer payment for so long? And consider the interest as well.

Reply 7

SuperDaz

13

Do you actually need to get a bank loan?

You can get a Credit Card with 0% interest for up to 12 months, stick it all on there and pay it back when you start earning.

It sounds like a good plan btw you should go for it :smile:

Spoiler

Reply 8

Indievertigo

15

I don't know for sure, but is there such a credit card? Most 0% interest deals over 12 months are on balance transfers and include a roughly 3% fee.

If you have the job, and that is certain, then go for it. 10k is a LOT though, you could go a year and spend half that. Get a RTW ticket, it'll save you thousands if you intend on going all over. And go to south america! :P

Reply 9

THE PROPHETOR!

OP

Hey guys, thanks for all the replies - they have been really helpful.

I'm thinking that maybe I should go into detail about what I think I will spend - maybe 10k is too much.

Oh and thanks for the credit card idea, i'll look into it.

Jason

Reply 10

SuperDaz

13

I don't know much about credit cards really but thought it was quite easy to get 0% rates nowadays. This site might tell you more http://www.moneysavingexpert.com/cards/lowest-interest-credit-cards

You could probably try and blag an overdraft too. I would try and take as little as possible as an actual bank loan though :ninja:

Reply 11

wij32

Its easy answer mate,

Cost of loan: £10k

Cost of 10months adventuring around the world, having hell of a laugh and visiting incredible places and meeting briliant places : PRICELESS.

Im doing the same with £5k over 3months. Should be fun.

Reply 12

Indievertigo

15

Most likely, with the credit card any cash you withdraw you'll be charged an arm and a leg for. Any foreign transactions you'll be charged a very unreasonable exchange rate. I'd stay away from them to be honest, a bank loan, provided you can set aside money to make monthly payments while your away, or have the payments deferred, is probably your best bet, unless of course you can open student accounts, in which case open as many student accounts as you dare and apply for the maximum free overdrafts.

Reply 13

marknorthlondon

Do you really need that amount of money?

To be honest I would only take half that but it depends where you are going

Reply 14

BiscuitFuelled

8

For the love of god, if you are actually considering taking that much money on a loan for a gap year (which for the record is one of *the* worst ideas I've ever heard), then go speak to a financial advisor, instead of listening to a bunch of people on an internet forum who don't have a clue what they're talking about (I include myself in this, before anyone goes in a huff).

£10,000 is a LOT of debt to be getting into.

Reply 15

Talya

16

Unless you have a very good job now, you probably won't get a loan. The bank will want to see proof of income before they give it to you.

Also, your credit card limit will probably not be anywhere near £10000.

£10,000 loan for gap year? Risky?

Related discussions

Latest

Trending

Trending

Articles for you